Twitter continues to depreciate since the purchase of Elon Musk. The platform is now worth only a third of what the tycoon paid in his day, according to the investment fund Fidelity, one of the firms that participated in the operation and which recently reduced the value of its stake in the company, according to reports. Bloomberg.
Musk’s investment in Twitter is now worth about $15 billion, according to the Bloomberg Billionaires Index, which uses Fidelity’s valuation to calculate the value of his stake. It should be remembered that the businessman invested more than 44,000 million to acquire an estimated 79% stake in the company last year. In a March message to employees, Musk himself estimated that Twitter’s value had fallen to about $20 billion, less than half what he paid in October.
Fidelity estimates that its stake in Twitter was worth just over $6.5 billion at the end of April, compared to the $19.7 billion it attributed to it last October, when Musk completed the acquisition of the company. The investment fund has been reducing its participation in Twitter since the arrival of the CEO.
Economic problems on Twitter are not new. And they are not new to Musk, who took office knowing that the platform was carrying a debt of 13 million dollars.
The tycoon has always trusted that the social network would take off, thanks to his initiatives. However, in these months, many companies have abandoned the platform due to its ups and downs and its continuous changes in criteria. And advertising revenue has fallen by half.
Musk’s ideas haven’t worked either. Twitter Blue, the paid subscription that was to be a major source of revenue, hasn’t worked. At least, as thought. By the end of March, less than 1% of the platform’s monthly users had signed up.
In the absence of a new occurrence, the businessman has authorized any initiative that involves increasing Twitter’s income: he made staff cuts, lengthened working hours, announced that he would allow political ads again and even organized an auction to sell all that furniture that considered expendable.
The devaluation of Twitter does not affect Musk too much. According to Bloomberg, despite the fall of the social network, the wealth of the tycoon increased more than 48,000 million dollars this year, in large part due to a 63% increase in the price of Tesla shares.